Oversold shares of Eli Lilly (SYM: LLY) could easily bounce higher on sales of its obesity drugs, which are still seeing considerable demand. And it could easily bounce higher with its Zepbound drug being considered for the treatment of sleep apnea.
In June, the company said “results from its phase 3 SURMOUNT-OSA study, which found that Zepbound at the 10-mg and 15-mg doses aced all primary and secondary endpoints in obese patients with obstructive sleep apnea (OSA), both with or without positive airway pressure (PAP) therapy,” as noted by FiercePharma.com.
If LLY can get US FDA approval for this, it could help the 80 million Americans who currently struggle with obstructive sleep apnea. At the moment, LLY expects a US FDA decision before the year is over. The agency already gave LLY a fast-track designation for it.
Technically, LLY is oversold at its 100-day moving average. It’s also over-extended on RSI, MACD and Williams’ %R, as it trades at $807.79. Initially, I’d like to see a retest of $950.
